• Revenue: Declined 1% to $143 million.
• Grill Revenue: Increased 13% to $87 million.
• Consumables Revenue: Decreased 6% to $30 million.
• Accessories Revenue: Decreased 27% to $26 million.
• Gross Profit: Decreased to $59 million from $63 million in Q1 2024.
• Net Loss: $1 million compared to a net loss of $5 million in Q1 2024.
• Adjusted EBITDA: $23 million, down from $24 million in Q1 2024.
• Cash and Cash Equivalents: $12 million at the end of the quarter.
• Long-term Debt: $404 million at the end of the quarter.
• Inventory: $127 million at the end of the quarter.
• Total Liquidity: $168 million at the end of the quarter.

• Warning! GuruFocus has detected 4 Warning Signs with COOK.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Traeger Inc (NYSE:COOK) reported a 13% increase in Grill revenues, driven by the successful launch of the Woodridge series and positive sell-through at retail.
• The company has implemented strategic pricing increases in collaboration with retail partners to offset tariff impacts, demonstrating proactive financial management.
• Traeger Inc (NYSE:COOK) is actively pursuing sourcing diversification to reduce reliance on China, aiming to shift production to other geographies by 2026.
• The introduction of new products like the Flatrock Two Zone and Oak and Whiskey blend pellets highlights Traeger Inc (NYSE:COOK)'s strong innovation pipeline.
• The company has a robust set of tariff mitigation strategies, including cost reductions and supply chain efficiencies, to protect profitability and balance sheet health.

Negative Points

• First quarter revenues declined by 1% compared to the previous year, with a notable 27% decrease in accessories revenue due to challenges in the MEATER segment.
• Traeger Inc (NYSE:COOK) has withdrawn its financial guidance for fiscal 2025 due to uncertainties related to tariffs and macroeconomic conditions.
• The company faces significant tariff exposure, with grills produced in China subject to a 45% tariff, impacting cost structures.
• MEATER continues to experience pressure from a slowing Smart Thermometer category and increased competition, affecting overall accessory sales.
• The broader economic environment presents uncertainty, with consumer sentiment near historic lows and potential impacts from evolving trade policies.

Q & A Highlights

Q: Can you provide some color around the strategic price increases across your product portfolio and how much we can expect this to increase? Also, how do you think about new product price points going forward? A: Jeremy Andrus, CEO: We conducted a sophisticated analysis to understand elasticity at a product and price level, which wasn't an even price increase across the board. We considered where we had permission to move prices more on some SKUs than others, especially as a premium brand. We anticipate that competition will also raise prices. Our product strategy is set years in advance, focusing on innovation and value, and we adjust pricing and promotion opportunistically.

Q: You acquired MEATER back in mid-2021. Can you talk about how the team is thinking about that segment and capital allocation going forward? A: Dominic Blosil, CFO: We are focused on navigating short-term demand challenges with MEATER while maintaining a long-term perspective. The strategy involves shifting from online sales to wholesale channels where we have competitive strength and less competition. We are also optimizing the cost structure to stabilize profitability and unlock long-term growth.

Q: Have you sensed a shift in retailer willingness to take on inventory given the current uncertainty? A: Jeremy Andrus, CEO: We haven't sensed reluctance from retailers to take on inventory. However, there has been a shift from direct import to domestic fulfillment due to tariff assessments. We are working through this to ensure inventory is available on time for the season.

Q: Can you clarify the tariff rates on products coming from China and Vietnam? A: Jeremy Andrus, CEO: Products from China are subject to a 45% tariff, including Section 232 and IEEPA tariffs. Vietnam products face a 25% tariff. Accessories have varying tariffs depending on their origin, with some subject to a 145% tariff if sourced from China.

Q: How are you approaching marketing this year, especially with demand creation being down in Q1? A: Jeremy Andrus, CEO: We are focusing on sales activation activities, such as in-store demos and Costco roadshows, rather than top-of-funnel marketing. We are being diligent with OpEx, prioritizing high-return marketing initiatives, and leveraging influencers to maintain brand awareness.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.